Remove 2003 Remove Experimentation Remove Risk Remove Strategy
article thumbnail

The trinity of errors in applying confidence intervals: An exploration using Statsmodels

O'Reilly on Data

As the number of experimental trials N approaches infinity, the probability of E equals M/N. Modern portfolio theory assumes that rational, risk-averse investors demand a risk premium, a return in excess of a risk-free asset such as a treasury bill, for investing in risky assets such as equities. on average.